The European Union announced that more than one large-scale project related to the issuance of stable coins will not be issued until all risks of tangential monetary sovereignty are eliminated.
Representatives of the European Union and the commission said that stablecoins can be useful to expedite transactions and reduce fees for money transfers. The statement was approved by the Economic and Financial Affairs Council (ECOFIN), but it is not clear whether it is the basis for any legal obligations. As cryptocurrency news reports, in a statement, political leaders noted that there are many nuances and difficulties in the process of accepting cryptocurrencies, and the main danger is state monetary sovereignty.
The problems, according to the authorities, require joint targeted solutions from the legislative side, as well as enterprises that intend to issue a stable digital currency must urgently provide complete information for analysis on the validityValidity
– is a term used in economics, psychology, financial affairs and other social disciplines. It means the degree of reliability, correctness and reliability of information, organization, enterprise. Details. Members of the European Union emphasized that no such project should be launched until all regulatory difficulties are overcome. With all this, they expressed support to central banks working on the assessment of costs and the effectiveness of introducing stable cryptocurrencies.
Interesting in the section: Financial geography: the cryptocurrency revolution of France
- The French central bank plans to test its own digital currency (CBDC), after the release in 2020, according to AFP news site.